From layoffs to billions in lost revenue Nokia clearly had one whopper of a painful year.

The biggest negative there is definitely the massive 25 percent drop in smartphone sales. One smartphone equals several feature phones in profit, so the feature phone dip -- due, according to Nokia, to its feature phones lacking the popular dual-SIM option in H1 2011 -- is far less troubling that the smartphone plunge.

Digging for good news amid the clouds, one can point out that in 2011 customers knew Symbian was going to die, but did not have access to Nokia Windows Phone offerings at all in some markets (like the U.S.) or did not have alternatives until very late in the year in other regions (Europe).

Likewise, Nokia can look forward to more payments from Microsoft Corp. (MSFT) who rewarded Nokia with $250M USD in Q4 2011 for picking Windows Phone. Lastly Nokia's feature phones are now dual-SIM equipped, and it's aggressive expanded its Asha line, which offers premium features like pictures, internet, and apps to feature phone customers.

Nokia was still the world's largest phone maker in 2011. But it must step up its game in 2012 -- both to avoid getting left farther behind in the smartphone race, and to avoid getting bumped by a surging Samsung Electronics Comp., Ltd. (KS:005930) from the world's top phonemaker slot.

Fortunately there is evidence that Nokia may be on the verge of the turnaround it needs. Nokia's miserable year, absence from the U.S. holiday season, and hopes for the future can perhaps best be summed up by the famous refrain of the Counting Crows' song A Long December:

A long December and there's reason to believe
Maybe this year will be better than the last.

I agree, it has been such a short period of time. Would people rather that Nokia pull an HP and dump WP7 after only a few months?

Windows Phone 7 is a really nice platform and it should have the opportunity to compete. I recommend WP7 to people who are averse to iOS for whatever reason or just want something different, and everyone I know who's gone with it seems to like it a lot.